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olya-2409 [2.1K]
3 years ago
8

You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock

B has only modest expected earnings growth, and stock C is expected to generate poor earnings growth. According to LaPorta's 1996 study, which stock is likely to generate the greatest alpha for you?
Business
1 answer:
WINSTONCH [101]3 years ago
7 0

Answer:

Stock C is correct answer

Explanation:

According to the investigation of LaPorta's 1996 study Stock expected to have poor earnings growth has the greatest alpha.  Unlike, the option stock A and option stock B with modest and higher earnings growth.

Corrct Answer: Stock C.

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Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

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Customers learn to trust companies that consistently demonstrate good behavior. Those same companies can lose this position with
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3 0
3 years ago
Patrick has an adjusted gross income of $120,000 in the current year. He donated $50,000 in cash to a public charity; capital ga
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if this is a multiple choice question post the choices and i will tell you the corrrect one. thanks

4 0
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YoYo Fashion December 31, 2013 balance sheet showed total common equity of $5,500,000 and 250,000 shares outstanding. During 201
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$23.6 per share

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